Milan is rapidly becoming one of Europe’s hottest destinations for wealthy investors and international buyers. Once known primarily as Italy’s fashion and financial capital, the city is now attracting a new wave of millionaires and entrepreneurs thanks to a favourable tax regime, quality of life, and booming real estate opportunities.
For foreign buyers considering investing in Milan property, the trend brings both opportunities and challenges.
- The flat tax: a game changer for international residents
- Why millionaires are choosing Milan over London and Paris
- Milan’s luxury property market: rising demand, limited supply
- Golden Visa: another route for non-EU investors
- Opportunities and lifestyle benefits
- Challenges to be aware of
- Is now the time to invest in Milan real estate?
The flat tax: a game changer for international residents
Introduced in 2017, Italy’s “flat tax” has transformed the appeal of Milan for high-net-worth individuals. The scheme allows new residents — whether foreign nationals or Italians returning after at least nine years abroad — to pay a flat annual tax of €200,000 on foreign-sourced income, regardless of its size, for up to 15 years. Family members benefit from a reduced rate of €25,000.
From 2025, the levy doubles compared with the original €100,000 threshold, but it still remains highly competitive compared with other European tax regimes. Crucially, it also exempts overseas assets from inheritance and gift tax — a major draw for international families.
Why millionaires are choosing Milan over London and Paris
The timing of this tax reform coincided with the UK scrapping its non-domiciled residents’ regime, which previously allowed foreign wealth to be shielded. With rising inheritance and capital gains taxes in London, many wealthy families have shifted their focus to Milan.
Unlike Dubai, Milan offers not only attractive taxation but also rich cultural appeal, proximity to lakes and mountains, world-class schools, private members’ clubs, and an international lifestyle. Prominent financiers, entrepreneurs and luxury brand executives are already relocating, strengthening the city’s position as a post-Brexit hub.
For property investors, this means Milan is now competing directly with Paris and London as a European base for the wealthy.
Milan’s luxury property market: rising demand, limited supply
The influx of high-net-worth residents has had a direct impact on the Milan real estate market. Demand for luxury residences, penthouses and “trophy properties” in central districts has soared, while supply remains tight.
- According to Savills, luxury penthouses of over 600 m2 in the historic centre now start at $8–10 million.
- Prime rental values have grown by 14% in the past five years, compared with +7% in Rome.
- Despite this, Milan still offers better value than London (€1,520 per sqm versus €1,920 per m2).
This makes Milan particularly appealing to foreign investors seeking both a residence and a long-term asset in a growing market. However, rising demand is also pushing up prices in surrounding neighbourhoods, making property searches more competitive.
Find luxury homes for sale in Milan
Golden Visa: another route for non-EU investors
Alongside the flat tax, Italy’s Golden Visa programme offers non-EU citizens a two-year residency permit in exchange for investment. Options include:
- €2 million in Italian government bonds,
- €500,000 in an Italian company,
- €250,000 in a start-up,
- or €1 million in cultural, scientific or conservation projects.
For buyers outside the EU, this provides an additional incentive to relocate capital and lifestyle to Milan.
Opportunities and lifestyle benefits
For international property buyers, Milan offers far more than tax breaks. The city combines modern business opportunities with the charm of Italian living:
- Education: a growing number of international schools.
- Lifestyle: private clubs such as Casa Cipriani and the soon-to-open Soho House.
- Culture: world-class museums, galleries and a thriving design scene.
- Connectivity: fast links to Lake Como, the Alps, and the Mediterranean.
In many ways, Milan today recalls London in the 1990s — but with a Mediterranean dolce vita atmosphere.
Challenges to be aware of
The surge of wealthy newcomers is not without downsides. Rising property values risk making central districts inaccessible to young professionals, while the city still faces long-standing issues such as air pollution and a shortage of green spaces. For foreign buyers, competition for prime properties can be fierce, and expert local guidance is increasingly essential.
Is now the time to invest in Milan real estate?
Milan’s transformation into a magnet for millionaires is reshaping both its economy and its property market. With the flat tax, Golden Visa, and ongoing demand for luxury living, the city stands out as one of Europe’s most attractive locations for high-net-worth individuals.
For international buyers, this may be the ideal moment to explore opportunities in Milan — before prices climb closer to those of London or Paris.